Research On Value Relevance Of Comprehensive Income Of Listed Companies In China

With the continuous development of the global economy,the objective of financial reporting is gradually changing from the concept of fiduciary duty to the concept of decision usefulness.At the same time,with the introduction of fair value,traditional net profit has been unable to fully meet the needs of users.In response to these new requirements,international authoritative experts began to explore new revenue model.Thus,comprehensive income began to enter our lives,and gradually formed a new concept of comprehensive income.The research on comprehensive income can help users to understand the situation of the company and reduce the investment risk,so the research on the comprehensive benefit is a hot issue in the recent years.In order to improve the advanced and scientific nature of accounting standards,China has also introduced the concept of comprehensive income.In 2009,China promulgated the accounting standards for the first time put forward the issue of comprehensive income.The most recent change in the consolidated income is in 2014.One of the highlights of the revised financial report is that the consolidated statement of comprehensive income and other comprehensive income,and will be included in the other part of the original capital reserve in the project to other comprehensive income.It also highlights the importance of comprehensive income.Firstly,the thesis conducts a normative study on the relevant theories of comprehensive income,and then selects the relevant data of a share listed companies in 2013-2015 as samples,and makes empirical study based on the price model.The conclusion is that: both traditional net income and comprehensive income have value relevance.However,compared with net profit,the value relevance of comprehensive income is weaker than that of traditional net profit.This is inconsistent with the assumptions of this thesis.We introduce the concept of comprehensive income because it should have higher value relevance than the traditional net profit.The results of the thesis are not so.This may be because the introduction of the concept of comprehensive income is relatively short;comprehensive income report is not verystandardized;users of financial statements are relatively low degree of acceptance.In addition,the comprehensive income is divided into net profit and other comprehensive income report than the reported value of the total value of comprehensive income will be increased.In recent years,many scholars at home and abroad are keen to study the value relevance of comprehensive income,and analyze it from different angles.Some scholars study the issue from the same point of view,but the conclusions are not the same.In the field of accounting in China,comprehensive income is a new concept.We can learn from foreign studies that the concept of comprehensive income is more advanced,but because of the existence of some objective factors,the concept of comprehensive income cannot be applied to practice in China.The popularity of the comprehensive income concept requires a gradual process.So,in the present study,the value relevance of comprehensive income is higher? What can also be studied from the comprehensive income become hot issue.The research point of the thesis is revised after the accounting standards,and this modification involves the issues related to the comprehensive income statement,so the research has certain theoretical and practical significance.